Debt Ructions

Russian Deputy Finance Minister Dmitry Pankin announced on October 6 that Moscow may report Mongolia to the Paris Club, if no progress is made on the repayment on an outstanding US$180mn loan. Russian investment in Mongolia has stalled this year, and it is unlikely to resume again until an agreement is reached on repayment. The loan was part of a joint venture between the two countries in the Mongolian mining sector. Going forward, although we note the potential for some disruption in relations between the countries, we nevertheless expect Russia to continue to invest in Mongolia over the medium

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